Sensex Today: Domestic equity markets opened on a positive note to exhibit strength amid steady foreign flows, softened crude oil prices, and retreating dollar. While benchmark index Nifty50 traded flat below 18,500 levels, the S&P BSE Sensex declined over 50 points to trade at 62,216 levels.
Larsen and Toubro, Apollo Hospitals, HDFC Life, Axis Bank and Hero MotoCorp were among major gainers on the Nifty, while losers were Power Grid Corporation, BPCL, ONGC, Adani Enterprises and Cipla.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Many favourable factors have come together to push the markets to record levels: the FOMC minutes indicating smaller rate increases, the sharp correction in crude, FIIs turning buyers, reports of impressive credit growth and capex revival and even the bad news of record Covid spread in China is turning out to be good news for India since it will accelerate the China Plus One policy.”
“Nifty breaking the previous record high of 18,604 is only a question of time. The significant feature of this rally is that it is driven by heavyweights like HDFC Bank, ICICI Bank, HDFC, Infosys, TCS, HCL Tech and RIL which have strong fundamentals and this makes the rally healthy. But the market is unlikely to surge from the record highs since the valuation headwind will act as a restraint. The vast majority of retail investors, particularly the newbies, have missed out on this rally since their portfolios are largely mid-and small-cap oriented. As of now, the possibility of the rally spreading to the broader market is limited,” he added.
Broader markets, however, outperformed benchmark indices as Nifty SmallCap 100 and Nifty MidCap 100 indices climbed up to 0.4 per cent.
All sectors shifted between gains and losses. Nifty PSU Bank index gained the most – up to 0.7 per cent, whereas Nifty IT, Nifty Media, and Nifty Metal indices declined the most – over 0.3 per cent each.
Mohit Nigam, Fund Manager & Head – PMS, Hem Securities, said: “Some stock specific actions can be witnessed in stocks such as Veranda Learning (partners with IIM Raipur & SHRM to launch online MBA), Fino Payments Bank (Capri Global Holdings buys additional 6.06 lakh shares), PB Fintech (WF Asian Smaller Companies Fund buys 1.5% equity stake in Policybazaar), Hariom Pipe Industries (Company completes setting up of 15 tonne electric melting furnace).”
“On the technical front, immediate support and resistance in Nifty 50 are 18,300 and 18,600 respectively. For Bank Nifty immediate support and resistance are 42,500 and 43,500 respectively,” he added.
Global Cues
Globally, though the US stock markets were closed on Thursday account of Thanksgiving holiday, the stock-index futures continued to trade in positive territory Friday as investors’ sentiment remained upbeat.
Markets in Asia-Pacific, meanwhile, inched higher this morning as Nikkei 225, the S&P 200, Topix, and Hang Seng indices rose up to 1 per cent.
On the commodities front, prices of Brent Crude trimmed week’s losses and edged up in early trade. Brent Crude hovered flat at $85 per barrel, whereas WTI Crude climbed 0.2 per cent to $78 per barrel.
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